Sustainability Management" is a management strategy based on three perspectives

2025/02/24

In recent years, in corporate managementSustainability Management.What is sustainability management?

(1) Environment
②Society
(iii) Economy

Management strategies that balance corporate growth and social contribution while considering sustainability in these three perspectives.It is also called "sustainable management.

Behind the growing demand for sustainability management among companies are the escalation of environmental issues such as climate change and resource depletion, the rising expectations of stakeholders such as consumers, investors, and business partners, and factors such as risk avoidance and improved competitiveness of the company.

Against this backdrop, interest in sustainability management is growing in Japan, but especially among small and medium-sized enterprises (SMEs), which believe it is important but find it difficult to put it into practice.

However,Sustainability management is no longer an inevitable part of future corporate management.It will be a theme.

This article therefore provides a detailed explanation of sustainability management, including the status of sustainability management initiatives in Japan, specific initiatives, and company case studies.

Larger companies are more likely to promote "sustainability management.

While the importance of sustainability management in companies has been increasing in recent years, please first look at the following data to see to what extent sustainability management is being promoted by companies in Japan.

◆Sustainability Management Initiatives (by employee size)

Source:Current Status of Sustainability and SDGs in Japanese Companies (Business Brain Ohta Showa Co., Ltd.)

The above is survey data for 2021, but according to a study by Business Brain Ota Showa Co,The larger the size of the company, the higher the rate of promotion of sustainability management.You will understand that.In particular,The number of employees is limited to 50, and the status of efforts differs, with small and medium-sized enterprises not making progress.is emerging.

Now, as to why many companies fail to promote sustainability management, please see below.

◆Issues in promoting sustainability management

Source:What is the actual status of ESG and sustainability management? "Survey on the Status of ESG Management Initiatives" Report (CCL. / Nikkei BP Consulting)A part of the author processing

According to the results of Nikkei BP Consulting's 2023 survey, the main challenges that companies perceive in promotingLack of personnel and resources, such as "Difficulty in securing personnel with expertise (76.9%)" and "Inability to allocate personnel and resources for promotion (75.1%)are mentioned.

From these results,While sustainability management is recognized as a philosophy, many companies are facing challenges in actual operation.You will understand that.

What these data show is,Growing Awareness" and "Lagging Practice" of Sustainability Management in Japanese CompaniesThe company as a whole has a better understanding of the importance of sustainability management and is aware of the importance of sustainability initiatives.

But as a matter of fact,While large companies are taking initiatives, small and medium-sized companies want to introduce them, but find it difficult.The current situation is that the hurdles to promotion continue to be high due to challenges in securing expert personnel and allocating resources.

Nevertheless, sustainability management is not merely a matter of corporate social responsibility; it is also directly related to enhancing corporate value and competitiveness, as consumer and investor awareness is changing and environmental and social considerations are becoming important criteria for corporate selection in this day and age,An essential initiative for the sustainable management of the companyIt has been established.

In the following section, we will explain in detail what specific measures are required to implement sustainability management.

Sustainability Management from Three Perspectives

In implementing sustainability management, companies must

(1) Environment
② Society
3) Economy

Sustainability must be pursued from these three perspectives.

Not only reducing environmental impact and contributing to society, but also sustainable growth as a company is an important factor.and maintaining an appropriate balance between these two is the key to sustainable management.

In the following sections, we will explain specific initiatives from each of these perspectives.

(1) "Environment" Initiatives

Addressing environmental issues is one of the most important elements of sustainability management. companies,To promote the reduction of greenhouse gas emissions and the effective use of resourcesand can contribute to the realization of a sustainable society.

The following initiatives are typical examples

◆Specific examples of environmental initiatives

(2) Efforts to "Society

The impact of our business activities on society is also important, and we respect diversity,To create a good working environment for all.will lead to sustainable growth of the company.

Examples of specific initiatives include

◆Specific examples of social initiatives

(iii) Efforts to "Economy

Ensuring sustainable corporate growth and economic stability is also an essential element of sustainability management, not only in terms of environmental and social considerations,Maintain long-term competitiveness while also ensuring corporate profits.are required.

Specifically, the following initiatives are required

◆Specific examples of economic initiatives

Sustainability management is not just about taking care of the environment and society,Management Strategies to Achieve Sustainable Corporate GrowthBy incorporating a balance of environmental, social, and economic perspectives, companies can ensure their long-term competitiveness and build a sustainable future.

In the next section, we will organize the differences and relationships between these concepts, which are often confused, in order to better understand sustainability management.

Difference and relationship between "CSR," "ESG investment," and "SDGs," which are easily confused.

The term "sustainability management" is widely used,Three similar concepts are often mentioned。

・CSR
ESG Investment
SDGs

Although these concepts are closely related to sustainability management, they have different meanings and objectives and are easily confused.

This section explains the differences and relationships between these three concepts and sustainability management.

Difference between "CSR" and Sustainability Management

CSR (Corporate Social Responsibility) is,The idea is that companies should not only pursue profits but also fulfill their responsibilities to society and the environment.

Specifically, CSR includes activities that are not directly related to a company's core business, such as donations, volunteer activities, contributions to local communities, and creating a good working environment for employees.It is a voluntary initiative aimed at "being a good corporate citizen。

Sustainability management, on the other hand, is a further development of the CSR concept and aims for sustainable growth by placing social and environmental considerations at the core of management.

If CSR is "social contribution activities with good intentions by a company," sustainability management is "a management strategy for a company to enhance its competitiveness and survive over the long term.

In addition, the CSR is described in the following section.The following article provides a detailed summary.Please see also

Related Articles:Benefits and Case Studies of CSR that Create Corporate Social Value

Relationship between "ESG investment" and sustainability management

What is ESG investment?This is a method of evaluating and investing in companies by considering environmental (E), social (S), and governance (G) factors.

It is used by investors to evaluate a company's long-term growth potential and risk management capabilities, with emphasis on reducing environmental impact, respect for human rights, and compliance.

Sustainability management and ESG investment differ in terms of the perspectives of the company and the investor.Sustainability management is something that companies incorporate into their own strategies for sustainable growth, and ESG investment is used as a criterion for investors to evaluate it.

This means thatSustainability management efforts will improve ESG ratings and help gain investor confidence.This is the relationship between the two.

As for ESG investments,The following articlesPlease also see the following page.

Related Articles:ESG refers to management and investment criteria based on "environmental, social and corporate governance

Relationship between "SDGs" and sustainability management

The SDGs (Sustainable Development Goals) are,It refers to the United Nations' 17 goals to be achieved by 2030.It shows the issues that need to be addressed globally, such as poverty alleviation, climate change action, and gender equality.

Sustainability management is a means of reflecting the goals of the SDGs in corporate management and linking them to specific actions.

For example, a company's efforts to reduce CO2 emissions and promote diversity will contribute to achieving the goals of the SDGs,The SDGs are "goals to be pursued," and sustainability management is "a management strategy to achieve those goals.This is the relationship between the two.

Thus, while sustainability management is related to CSR, ESG investment, and SDGs,It can be said that the concept of incorporating these concepts into management strategies is a way of thinking that balances corporate growth with social responsibility.

The following is an explanation of the benefits to a company of engaging in sustainability management.

Five Benefits of Sustainability Management Initiatives

Sustainability management is an initiative that aims to contribute to the environment and society, but does not in itself directly lead to higher sales.

However, in terms of sustainable growth and competitiveness of the company, it offers many advantages: to stabilize management in the long term, it provides the following benefits

◆Five Benefits of Sustainability Management Initiatives

By engaging in sustainability management,Companies can achieve long-term growth and increase their competitiveness.

What about environmental and social considerations?Improved brand image and investor recognitionIn addition, energy conservation and resource recycling initiatives can lead toIt promotes business stability in the form of cost reductions.

Furthermore,Securing human resources by creating a comfortable working environment and avoiding risks by adapting to laws and regulations.This is also expected to have a positive effect.

As corporate management of the future is required to aim for sustainable growth, not just the pursuit of short-term profits, sustainability management is one of the key strategies to achieve this goal.

Next, we will introduce some examples of companies that actually engage in sustainability management.

Three case studies of companies engaged in sustainability management

Here we introduce the efforts of three companies that are actively promoting sustainability management and achieving positive results.

Case Study 1: Canon Inc.

Since 1988, Canon Inc. has been committed to a multifaceted approach toward the realization of a sustainable society under the corporate philosophy of "Kyousei" (coexistence).

In terms of environment,Aiming to reduce CO2 emissions throughout the product life cycleWe promote energy-efficient product design, CO2 reduction activities at our business sites, and the use of renewable energy.

In addition, from the viewpoint of resource recycling, we actively promote waste reduction, reuse, and recycling,In 2023, approximately 83,763 tons of recycling treatment has been commissioned.

On the social front, we aim to respect human rights, improve the working environment, and promote sustainability throughout the supply chain.Canon Sustainability Supplier GuidelinesThe Company has formulated the "Mazda Group's CSR Report" and is promoting initiatives in cooperation with its business partners.

Sustainability Committee established in April 2024.The Company has a system in place to ensure appropriate and effective decision making by the CEO and the Board of Directors.

Reference: Sustainability (Canon Inc.)

Case Study 2: Goldwynn Inc. (THE NORTH FACE)

Goldwyn, which operates the outdoor brand THE NORTH FACE, promotes sustainability management based on its corporate philosophy of "realizing rich and healthy lifestyles through sports.

On the environmental front, we offer product repair services with the aim of realizing a recycling-oriented society,Introduction of a warranty system for repairing damaged products and repair services for past products。

Through these efforts,Repairs approximately 14,000 products per yearto extend product life cycles and reduce environmental impact.

In addition,Development of new fibers made from "structural proteins" produced from microbial fermentation processesThis fiber development (third fiber) is expected to contribute to the reduction of environmental impact based on resource recycling.

On the social front, we are working with local communities to achieve sustainable "conservation and utilization" of national parks, thereby balancing the conservation of the natural environment and local revitalization.

Reference: Sustainability (Goldwyn Inc.)、Goldwyn's vision for the future: Aiming for the practical application of "third fibers" that can be recycled and for the sustainable "conservation and utilization" of national parks (Sustainable Brand Japan)

Case Study 3: ITO EN Ltd.

ITO EN promotes sustainability management that balances the resolution of environmental and social issues with the enhancement of corporate value, based on the basic concepts of "nature, health, safety, good design, and good taste" in product development.

In terms of environment,Contributing to the promotion of sustainable agriculture through tea production area development projectsAlso, weight reduction of PET bottles and increased use of recycled materials,Introduction of environmentally friendly paper containers "Aluminum-less ECO ContainersIn addition, we are actively working to reduce our environmental impact by reusing tea leaves and reducing the use of pesticides.

These efforts have garnered consumer support and improved the company's image.

On the social front, we place emphasis on coexistence with local communities, supporting agriculture and community revitalization through our tea growing business, and we also focus on employee health and a comfortable work environment to foster a corporate culture in which a diverse workforce can thrive.

Reference: ITO EN Group Basic Sustainability Policy (ITO EN Corporate Information Site)、Environmental Initiatives (ITO EN Product Information Site)

These companies are pursuing sustainability in environmental, social, and economic aspects and achieving tangible results through their proactive approach to sustainability management.

Conclusion

Sustainability management is a management approach that aims for corporate growth while taking environmental, social, and economic sustainability into consideration. unlike CSR and SDGs, it goes beyond social contribution and is integrated into a company's management strategy itself, and its efforts can yield many benefits, including improved corporate value and investor recognition.

In Japan, awareness of sustainability is spreading, and large companies and others are making progress in sustainability management, but many small and medium-sized companies are still not fully committed to sustainability management.

However, in recent years, companies are increasingly required to manage sustainably due to tighter environmental regulations and changing consumer awareness, etc. It is important to respond to these changing times and actively practice sustainability management in order to balance corporate growth and social sustainability.

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